Symantec (NASDAQ:SYMC) is to acquire web security company Blue Coat, Inc., for approximately $4.651 billion in cash.

The transaction has been approved by the Boards of Directors of both companies and is expected to close in the third calendar quarter of 2016.
In connection with the deal, Silver Lake will make an additional investment of $500m in 2.0% convertible notes due 2021 of Symantec, doubling its investment in Symantec to $1 billion.
In addition, Bain Capital has made an investment of $750m in the convertible notes. The convertible notes are noncallable and unsecured, and have an initial conversion price of approximately $20.41 per share. In connection with this investment, David Humphrey, a Managing Director of Bain Capital Private Equity, will be appointed to Symantec’s Board of Directors, effective at the close of the transaction.

Led by Greg Clark, Chief Executive Officer, Blue Coat provides a security platform that protects global enterprises and governments and their users from cyber threats – whether they are on the network, on the web, in the cloud or mobile.
The company currently serves more than 15,000 customers worldwide.

Following the close of the deal, Clark will be appointed Chief Executive Officer of Symantec and will join the Symantec Board. The Board will continue to be led by Symantec’s current Chairman, Mr. Dan Schulman. Members of Blue Coat’s management team have not only agreed to join Symantec but also made the decision to rollover a substantial portion of their cash and options into the combined entity.

The combined company will be headquartered in Mountain View, California.